Talks between developer, city stall

PILOT POINT — Disagreements between City Council members and
a land developer in Pilot Point have resulted in a standstill, leaving the
developer seeking another way to get his residential project started.

Since November, Eland Farms developer Van Nichols sought to
enter into an agreement with the city that would allow for the creation of a
municipal utility district in the city’s extraterritorial jurisdiction, or ETJ.

By operating a utility district, Nichols can issue bonds for
the installation of the water and sewer services needed to support his 800-acre
residential and commercial project. Nichols can also set and collect taxes on
properties within the district to generate revenue and to pay the bond debts.

However, conflict emerged after he and the city could not
agree on terms regarding annexation, which is the city’s ability to incorporate
property into the city limits and collect property taxes.

City leaders said they wanted to annex the property within
15 years, but Nichols requested an approximate 35- to 40-year plan.

The council agreed not to move forward with the agreement
during a meeting on Monday.

By state law, a city cannot collect taxes on properties in
its ETJ until it’s annexed, and city officials said they would like to add the
development to the tax base.

When talks first began, city officials said they believed an
agreement with the developer was almost guaranteed to happen.

City staff members told council members that Nichols was
willing to negotiate and work toward an agreement.

City leaders and the developer agreed on several items
during the months of discussion, including sharing some of the tax revenue.
Nichols also agreed to add features such as trail systems and parks at the
city’s request.

However, in the last couple of weeks, Nichols said he felt
the council members wanted more than he was willing to give.

“I’ve been willing to work with the city,” he said. “I don’t
want to develop my land and then have the city come in and tell me how I should
regulate it.”

Nichols was seeking state legislation to approve his
district, but without the city’s consent, he will go a different route.

By law, if a city doesn’t give consent, landowners can
petition city officials to expand infrastructure to their property at the
city’s expense, but the city is not required to do so.

If, within 120 days, the city fails to provide services, the
applicant may petition the Texas Commission on Environmental Quality for the
creation of the MUD and the city’s consent is presumed by TCEQ.

Simply put, Nichols will attempt to bypass the Pilot Point
council by having his district approved by the TCEQ and exclude the city from
any future agreements.

The difference between a TCEQ- and a legislative-created
district is that the TCEQ does not grant a developer the authority to build
roads whereas state legislation does. The county will have to foot the bill for
road construction for a district created by the TCEQ.

“I think I gave the city a fair opportunity,” Nichols said.

If created, Eland Farms would be the fourth utility district
in Pilot Point’s ETJ.

Four Seasons Ranch, Talley Ranch and Smiley Road (formerly
Shiney Hiney) are the three districts now in the city’s ETJ. Created between
2005 and 2007, all sit undeveloped, in anticipation of the Dallas North Tollway
expansion, Pilot Point Mayor Greg Hollar said.

Hollar said he feels there are too many questions left that
he needs to answer before the city consents to another district.

Nichols said he believes the city’s hesitation to give
consent is a result of the city’s history with the other three utility
districts, which have annexation plans that exceed 15 years.

Adams said there’s still time to find a solution with Eland
Farms that can make both parties happy.

“I anticipate there will be another opportunity to reach an
agreement,” he said. “But right now, the council has decided not to take any
action.”

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